My focus on accounting integrity, similar to to the work done by Piotorski, helps value investing work by
avoiding value traps.
That discipline alone goes a long way toward
avoiding value traps.»
«The question in
avoiding a value trap is two fold.
«We want to
avoid value traps like the plague.
«The best way to
avoid a value trap is to ask the obvious question; «if this stock is so cheap, why is it cheap?
«I think that it's easy to
avoid value traps.
That's how we try to
avoid value traps» Eric Marshall
We believe our methodology helps identify the most attractive stocks at the best time to consider buying, helping to
avoid value traps and lagging performance due to the opportunity cost of holding a stock with great potential but at an inopportune time.
If you want to learn more check out these resources: Key Financial Ratios for Investing
Avoid Value Traps -LSB-...]
Some of the most powerful screens like the O'Shaughnessy trending value screen
avoid value traps by using a momentum factor.
It looks for relatively undervalued stocks but tries to
avoid value traps by only selecting the companies with the highest stock price increase over the last 6 months.
I think it's easy to
avoid value traps.
The goal is to
avoid value traps and only invest in real value stocks.
Enabled by modern technology, investors can now enhance a pure value strategy by using momentum to improve timing, measuring quality to
avoid value traps, and diversifying active bets into less efficiently priced small stocks.
Finally, to
avoid value traps, the methodology screens out the worst performers by excluding the bottom 5 % of securities with negative one - year price performance.
The actual goal of a value investor is to
avoid value traps.
It's not perfect, and it's still a work in process, but anchoring estimates of intrinsic value on the earnings power of company assets (relative to a required rate of return, which I set at an exacting 10 %) helps
avoid value traps.
However, you want to make sure that
you avoid value traps, which could mean the company -LSB-...]
In part III of the interview the gurus discuss how to
avoid value traps.
Not exact matches
As long as you do your due diligence, looking out for phenomenon such as
value traps, viewing both the individual stocks you hold in your portfolio, and your portfolio as a whole, through this lens can help you
avoid getting swept away in bubbles, manias, and panics.
We assess the
value of dividends in various interest rate environments over an 88 - year period and discuss how to
avoid typical «yield
traps» in the design of high - dividend strategies.
«To
avoid potential
value traps, we also filter our companies where the 10 year trend in cash flow as a percentage of sales or per fully diluted share is negative» Bernard Horn
Value investor Guy Spier writes: «I try to
avoid walking into the
trap of making statements about any stocks that we currently own, since the situation might later change or I might discover that I was wrong.
In order to
avoid «
value traps,» or cheap stocks that continue to get cheaper, the manager will generally weight until a potential stock is in an uptrend before buying.
Quality is an excellent complement to
value; the combination of the two helps investors
avoid common investing
traps.
We think systematic fraud, manipulation, or bankruptcy detection models can sometimes help us
avoid various blowup situations, and related potential
value traps.
When looking at net - net stocks there are a few quick ways to spot
value -
traps and knowing them will help you
avoid most
trap situations.
Apologies to my Chinese friends out there, but to
avoid as many
value -
traps as possible I would also reject investment in any net - net stock headquartered in China.
In deciding how much of each stock to own, a focus on business Quality (as measured by profitability, stability and financial strength) helps us to maximise our exposure to those stocks which are both attractively
valued and good quality and to
avoid «
value traps».
Can you also write about
value traps or checklist to
avoid a mediocre business.
Avoid being a victim of
value traps by only investing in net - nets which: Generate revenue, experience NCAV Burn of less than 25 % annually, aren't based in China or if you are risk averse, aren't Chinese, have sold at a price above the current NCAV in the past 5 years, and are not issuing shares.
The moral of the story is that a
value trap can be
avoided by focusing first and foremost on fundamentals.
Our work with prices helps to
avoid investing in
value traps.
The quality focus also seeks to
avoid «
value traps» — companies with favourable valuation metrics as they approach bankruptcy, that a pure
value exposure would likely fall into.
These days I (generally)
avoid buy falling knives, or
value -
traps — which can be a common
value failing — because I've realized
value's irrelevant in such situations, you need definitive technical confirmation before buying.
For our advice on how to identify real
value and
avoid misleading indicators, read How to
avoid «
value traps».
If you think a company might be a
value trap, you should do more due diligence then you normally would or outright
avoid it.
September 2006 by Wayne Thorp AAII's
Value on the Move screens seek value - oriented stocks but attempt to avoid typical value traps by adding criteria for earnings growth and relative stre
Value on the Move screens seek
value - oriented stocks but attempt to avoid typical value traps by adding criteria for earnings growth and relative stre
value - oriented stocks but attempt to
avoid typical
value traps by adding criteria for earnings growth and relative stre
value traps by adding criteria for earnings growth and relative strength.
While sifting through this High Yield Dividend Stocks list, be sure to
avoid this dividend
value trap.
They may all turn out to be losers, but I think we need to consider Greenblatt's assertion in the article that you reference (Adding Your Two Cents May Cost a Lot Over the Long Term) that investors systematically
avoid buying many of the biggest winners because they look like losers /
value traps.
They are meant to cover the basic areas of
value investing, while attempting to
avoid the
traps that harm
value investing.
If they are too patient when management is not motivated / talented, yes, the stock will remain cheap — that's a
value trap, and
avoiding them is what the better
value investors do.
The goal of our show is to educate each and every Kansan about their rights in personal injury and workers» compensation matters so they can make real and effective choices in proceeding with their claim, including how to hire and fire an attorney, whether you even need an attorney, how your case is
valued and how to
avoid pitfalls and
traps that can trip you up and cost you money.